Suppose when the price of novels goes from $15 to $20 per book, production increases from 760 million books to 840 million books per year. Using the mid-point method, the price elasticity of supply is:

A. 37 percent
B. 0.77
C. 28.5 percent
D. 0.35


Answer: D

Economics

You might also like to view...

More education would by itself lead to many more jobs being available

Indicate whether the statement is true or false

Economics

If an externality is created by a single person or firm, and affects only a single person or firm, then

a. it is referred to as a single externality b. the inefficiency caused by that externality may be resolved by those two parties c. the externality takes the form of a side payment d. Pareto efficiency is guaranteed e. fairness dictates that the externality be removed

Economics

Since we live in a world of high concentration ratios,

a. goods are produced at the lowest possible average total cost b. perfect competition does not exist c. most markets operate under conditions of monopoly d. prices are at their lowest possible levels e. it is an economic paradise

Economics

When federal regulations protect birds, such as the spotted owl, lumber prices rise because

A) there is less supply of available timber. B) there is less demand for available timber. C) there is more supply of available timber. D) there is more demand for available timber.

Economics